FTSE on the up
A positive stance for banking stocks and some well received trading updates helped lift the London market today.
Halifax Bank of Scotland led the way for the FTSE 100 Index after gaining 5%, buoying sector rivals in the process.
Along with optimistic early signs for Wall Street trading and rising oil prices that saw energy firms gain some ground, the FTSE 100 Index was up 72.4 points to 5732.8 by lunchtime.
The mood in London was also helped early on after investor-pleasing updates from caterer Compass and transport firm FirstGroup.
Britain's biggest mortgage lender HBOS recovered from last week's battering to stand nearly 5% higher, up 27p at 568.5p.
Barclays followed with a gain of 14p to 458.75p, while Royal Bank of Scotland was 5.75p higher at 346.25p. Alliance & Leicester also joined the party, adding 12p to 556p.
On a busy day for trading updates, Compass was among the best performers - up 11.25p to 322.25p - after its performance in the first five months of the current financial year came in ahead of hopes.
FirstGroup shares were also up 21.5p at 566p after it said it would post full-year results in line with expectations. The update came as a relief to investors after the transport group was recently criticised by ministers for the performance of its First Great Western franchise.
Housebuilder Persimmon clawed back some ground from yesterday's falls, adding 34p to 771.5p. Wolseley, which was another loser during yesterday's gloomy session, also rebounded, gaining 13p to 540p.
A couple of heavyweight mining stocks posted gains during the session as metals prices nudged up - Anglo-American adding 83p to 3028p and Rio Tinto rising 137p to 5187p.
The biggest loser was B&Q owner Kingfisher as the home improvement group cut its dividend by 50% and said it was not expecting an imminent pick up in trading conditions. Shares topped the FTSE 100 fallers board with a drop of 6.3p to 128.8p.
Elsewhere in the top flight, crude oil prices of more than 106 US dollars a barrel meant BP rose 2.5p to 518p and Royal Dutch Shell added 12p to 1669p. Prospector Cairn Energy was another big gainer, up 127p to 2813p.
In the FTSE 250 Index, food producer Northern Foods rose 6%, or 5.75p to 92.75p, as the market welcomed a reassuring trading update from the Goodfella's pizza maker.
